Sergio Agüero has ended speculation linking him with a move to Tottenham Hotspur after signing a contract extension with Atlético Madrid.

Spurs had lodged a club record bid of 45m euros (£38m) in an attempt to bring the 22-year-old to White Hart Lane. But the Argentina forward agreed a two and a half-year extension to his existing deal earlier this month and formally signed the contract at a presentation in Madrid today.

The new deal is thought to reduce the buy-out clause in the player's contract but Agüero himself insists he will not be leaving the Vicente Calderón. "I'm staying here because I want to," Agüero told Atlético's official website.

Tottenham's offer for Agüero is understood to have followed a failed £25m offer for Athletic Bilbao's Fernando Llorente as Harry Redknapp attempts to add a striker before tonight's 11pm transfer deadline. Andy Carroll – who Newcastle United have rejected a £25m bid for from Liverpool – is another target, as are Sevilla's Luís Fabiano and Agüero's team-mate Diego Forlán.